Consider how long it takes different lenders to process applications when
choosing a mortgage to avoid problematic delays

Home buyers are being warned that some lenders are taking around 40 days to approve mortgage applications, resulting in delays that could cost them their property.

Brokers claim the process can typically take anywhere from five to 40 days depending on the volume of applications a lender has received, the complexity of individual cases and their internal processes.

As competition among buyers intensifies, sellers are increasingly unwilling to accept delays. Stalling for just a few weeks can tempt sellers to return the property to the market, knowing there is a reasonable chance they could achieve a higher price.

Brokers say buyers should consider the time it takes lenders to process applications, as well as other factors, when choosing a mortgage. Processing times constantly fluctuate and lenders offering market – leading rates tend to have longer waiting times because of the large volume of business they receive. Complex or incomplete applications, or loans for borrowers with a small deposit, can also take longer.

David Hollingworth, of brokerage London & Country, said Halifax usually took around 18 days to process applications and was consistently one of the fastest. Small and specialist lenders such as Yorkshire Building Society's Accord Mortgages and Leeds Building Society can take around 40 days.

"Twenty days is considered good," said Mr Hollingworth. "Most lenders take between 20 and 25 days to process applications.

"The smaller and specialist lenders tend to take much longer because they often take on more complex cases that high street lenders won't touch. They generally have to ask more questions."

Aaron Strutt, of brokerage Trinity Financial, said buyers in London, the South East and other areas where the property market is overheating were under a lot of pressure to exchange contracts as quickly as possible.

"If you are in a hurry to complete you may have to go to a different lender that is charging a slightly higher rate, but at least you will still be able to meet any deadlines and buy the property," he said.

Research by the Council of Mortgage Lenders found that it took an average of 72 days in the year to June 2013. The time in Scotland is significantly shorter because the home – buying process is slightly different and contracts become legally binding at an earlier stage in the process.

A Scottish first – time buyer takes 59 days on average to complete, compared with 81 in the UK as a whole.

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